Supply-side fiscal policies include all of the following EXCEPT: O investment in human capital. O increasing transfer payments. O policies that encourage investment in research and development. O projects that include the encouragement of new technologies. QUESTION 38 Papa Smurf, the president of Smurfsville, hires you as an economic consultant. Papa Smurf is worried that the output level of Smurfsville is too high and that this will lead to inflation. He feels that it is necessary to reduce economic activity by $50 billion. Through your analysis, you learn that the MPC of Smurfsville is 0.80. What advice would you give to Papa Smurf? O reduce government spending by $15 billion. O reduce government spending by $50 billion. O increase taxes by $10 billion. increase taxes by $12.5 billion